KUALA LUMPUR, Oct 8 — Bursa Malaysia is expected to trade sideways next week, with the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) moving between 1,390 and 1,415 levels due to the absence of buying catalysts, an analyst said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the market undertone remained jittery amid the heightened global market risks and volatility.
“For next week, we expect trading to be muted due to the shortened trading week and foresee the FBM KLCI trending sideways within the 1,390 and 1,415 range.
“Technically, the immediate resistance is spotted at 1,410 followed by 1,430, while support is at 1,400 followed by 1,380,” he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes expected interest for local equities to remain muted following a strong US dollar and higher US yields, which tarnished any hope for recovery ahead of the weekend.
“I feel the market will be very sensitive to US data while keeping an eye on China stimulus or a potential change in Covid-19 strategy.
“Given the strong US Jobs Report that will keep the US Federal Reserve in rate hike mode, domestic investors will remain concerned on whether the local economy is able withstand a possible central bank-induced recession,” he said.
Innes also said that oil and liquefied natural gas sectors could remain a bright spot next week, with oil and natural gas prices heading higher.
On a Friday-to-Friday basis, the FBM KLCI improved 11.37 points to 1,406.00 from 1,394.63, mainly due to improving global sentiment and bargain hunting activities.
On the index board, the FBM Emas Index increased 73.93 points to 10,050.79, the FBM 70 rose 50.06 points to 12,251.87, the FBMT 100 Index climbed 69.84 points to 9,798.54, the FBM Emas Shariah Index rose 63.27 points to 10,071.30, and the FBM ACE garnered 51.10 points to 4,708.97.
Sector-wise, the Energy Index put on 27.01 points to 697.19, the Industrial Products and Services Index edged up 4.18 points to 174.05 and the Financial Services Index ticked up 149.76 points to 16,072.21.
The Plantation Index, however, slipped 6.44 points to 6,467.32.
Weekly turnover improved to 11.10 billion units worth RM7.65 billion compared to 10.90 billion units worth RM9.60 billion in the previous week.
The Main Market volume was slightly lower at 6.56 billion shares valued at RM6.46 billion against 6.72 billion shares valued at RM8.17 billion in the previous week.
Warrants volume dipped to 1.01 billion units worth RM178.26 million from 1.33 billion units worth RM221.78 million last week.
The ACE Market volume went up to 3.52 billion shares valued at RM1 billion from 2.84 billion shares valued at RM1.31 billion the week before. — Bernama
